A Study On The Costs And Benefits Of Green Bonds Issued By Enterprises

In order to achieve simultaneous development of economic construction and environmental protection,the transformation of China’s economic growth mode has been gradually promoted,and the development of green industries can meet economic development while protecting the environment and meeting enterprises’ commitment to social responsibility.China focuses on the guidance of the green transformation of enterprises and strongly supports the construction of green financial system.2016,China’s green finance began to develop,establishing the top-level design of green development and the initial formation of the green financial system.2017,China launched the "Guidance on the Construction of Green Financial System",and China’s green bonds are in spurt.In this context,financial instruments have become an important means to solve economic and environmental problems.At present,China’s industries are developing rapidly,however,the waste of resources and damage to the environment caused by economic development are becoming more and more serious,and all industries are under pressure to transform themselves green.The green transformation and upgrading of enterprises requires a large amount of capital,and government support alone is far from sufficient.In addition to government policy support,it is also necessary to increase market participation to jointly help enterprises carry out green transformation and upgrading.Green bonds,as an important part of the green financial market,have been increasing in size in recent years with the support of national policies,and the issuing entities have gradually diversified,with various debt issuing entities issuing green bonds to support the green transformation of enterprises.Although the scale of China’s green bond market is large and the issuing entities are enthusiastic in issuing bonds,at present the issuance of green bonds in China mainly relies on the support of national policies,and a considerable number of enterprises issue green bonds for the important reason of responding to the national call for green transformation,paying less attention to the green impact brought by issuing green bonds to enterprises.Under such circumstances,studying the financing cost of green bonds issued by enterprises,the positive effect on society and the positive impact on the environment can help enterprises gain a deeper understanding of the role of issuing green bonds,provide reference and inspiration for corporate refinancing,help enterprises in need of financing to correctly understand green bonds,expand financing channels,establish a green corporate image,take the initiative to carry out corporate green transformation and upgrading,and play the role of green bonds in promoting green The role of green bonds in promoting sustainable development of the green economy.This paper analyzes the costs and benefits of issuing green bonds using the literature induction method and case study method,reads and composes the relevant literature at home and abroad,and selects the green bonds issued by BYD Co.This paper provides theoretical support from Porter’s hypothesis,the theory of financing priority and the theory of corporate social responsibility.The analysis of the financing cost,social benefits and environmental benefits of BYD Co.This paper finds that the issuance of green bonds can meet the capital needs of enterprises on the one hand,and help them develop green industries on the other,and has the advantage of financing costs,promoting environmental improvement and significant social benefits.The successful issuance of green bonds by BYD has served as a good model for private enterprises with financing needs,and enterprises that have not yet issued green bonds can learn from the relevant experience.At the same time,this paper also found that there are problems in China such as the green bond market is not yet mature,there are problems in the way enterprises develop their industries,and investors have not yet established the concept of green investment.In this regard,this paper makes the following suggestions: firstly,the state should accelerate the formulation of relevant policies,improve relevant laws and regulations,increase support for enterprises to issue green bonds,highlight the cost advantages of green bonds,and help more enterprises to issue green bonds to support the development of green industries and green projects;secondly,enterprises should actively change their mode of enterprise development,develop green products and green technologies to support the development of green industries Third,investors should establish the concept of green investment to promote the multi-win development of individuals,enterprises and society,and help the development of environmental industries.